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Another brick in the wall? Technology leaders, patents, and the threat of market entry

Diana Heger and Alexandra Zaby ()

No 77, University of Tübingen Working Papers in Business and Economics from University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics

Abstract: Technology leaders protecting a technological headstart with a patent are provided with a powerful legal measure to restrict market entry. We analyze the impact of knowledge spillover on the decision to patent and the effect of varying patent breadth on the threat of market entry. An empirical test of our theoretical results suggests that (i) a large technological lead is protected by a patent only in industries with high knowledge spillover, and that (ii) patent breadth can mitigate the market entry threat.

Keywords: patenting decision; disclosure requirement; patent breadth; market entry threat; IPC codes (search for similar items in EconPapers)
JEL-codes: L13 O33 O34 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ind, nep-ino, nep-ipr, nep-pr~ and nep-tid
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuewef:77

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